The deal entails the amalgamation of their present and forthcoming ventures throughout the African continent, giving rise to the most extensive Pan-African non-banking financial services entity to date.
The collaborative venture aims to secure a position among the top three contenders in both market share and profitability within the designated markets. Heinie Werth, the current Chief Executive Officer of Sanlam Emerging Markets, will assume the role of CEO for SanlamAllianz. With an extensive 25-year tenure at Sanlam, Werth has held various executive positions, including that of finance director.
The combined operations of Sanlam and Allianz will create a premier Pan-African non-banking financial services entity, operating in 29 countries across the continent. The joint venture will be the largest Pan-African insurance player and is expected to be ranked in the top three, in the majority of the markets where the entity will operate. The entity is expected to have a combined total group equity value (GEV) in excess of 33 billion South African rand (approximately 2 billion euros).
Speaking about the news, Paul Hanratty, Sanlam Group’s CEO, commented, “We are confident that SanlamAllianz will create significant value for clients, shareholders and other stakeholders.
“The combined expertise and resources of our respective companies will enable us to provide innovative solutions and services to meet the ever-evolving needs of our clients on the African continent.”
The duo has disclosed that Namibia will be incorporated at a later date, with the notable exception of South Africa, which is excluded from the agreement.
Christopher Townsend, board member of Allianz SE, commented, “SanlamAllianz has the capability to gain leadership positions in all key markets in both general insurance and life segments.
“With this powerful partnership, we want to unlock the potential of multiple fast-growing African markets and access a wider range of customers, particularly in the corporate segment. Allianz is deepening its commitment to the vibrant continent and is building on our 100-year legacy here.”
SanlamAllianz is placing a strong emphasis on advancing financial inclusion through enhanced accessibility to products and services via digital innovation. The company is strategically positioned to harness the potential of its telecommunications and bancassurance partnerships, fostering new opportunities throughout the African region.
The collaboration aims to deliver a synergy of two multinational brands, enriching offerings in both property and casualty, as well as life insurance domains through innovative approaches. Capitalising on increased economies of scale, the company plans to expand its life and general insurance businesses through continuous innovation in products, services, and distribution channels.
Hanratty concluded, “The joint venture marks a significant step forward in further implementing Sanlam group’s strategy that we have pursued over the past few years. Opportunities to improve insurance penetration in Africa abound for those with the right combination of financial strength, scale, new technology and a tangible commitment to the customer.”
He added: “We believe that SanlamAllianz has all the ingredients to succeed on this new journey.”
Author: Joanna England
Original source: Allianz
